Diversity in Central and Eastern Europe The decisive next growth factor?

Diversity in Central and Eastern Europe –

The decisive next growth factor?

Vi

N

b 13 2013

Study presentation

The decisive next growth factor?

1 Diversity_in_CEE.pptx

Erste Group and Roland Berger have established a long-standing

and successful cooperation in CEE: the CE Business Club

> Presentations and panel discussions on relevant issues for Central and Eastern Europe with participants from management and diplomacy > Since 2006, twice a year, we together address key issues for business

performance in CEE through the CE Business Club platform

Our common mission is to understand and further

drive relevant business issues in CEE

Diversity in Central and Eastern Europe –

Executive Summary

1

Diversity is not just an HR topic. It requires true partnership and

ti i ti f ti l i i ti th t li th i ff t

1

participation across functional areas in an organization that align their efforts in support of a shared vision and goals for diversity and inclusion.

M i h l f d tt ti d t i i di

2

Many companies have only focused on attracting and retaining diverse

employees and have not critically examined their organizational cultureto

assess their capabilities to leverage that diversity for learning, innovation and achieving superior results.

2

3

Although participants of this study confirm that there is a strong correlation

between a company's financial performance and having a diverse top management team, currently no real measurable link has yet been established

Maximizing and capitalizing on workplace diversity is an important issue

which requires a clear multi-annual program with objectives, actions, communication and measurement of performance and impact

4

established.

3 Diversity_in_CEE.pptx

communication and measurement of performance and impact.

Contents

Page

A

What is Diversity and Inclusion (D&I) and why is it relevant?

₅

A.

y

(

)

y

Unleashing people's potential is understood as a driving factor for business success

B

Diversity and Inclusion in Central and Eastern Europe (CEE)

Diversity in the boardroom contributes to better financial results

5

11

B.

Diversity in the boardroom contributes to better financial results

C.

CEE Managers' opinion

Significant room for the development of D&I programs in CEE exists

11

17

g p p g

D.

Lessons learned

Comprehensive programs, clear commitment and communication are necessary

35

E.

Authors

A.

What is Diversity and Inclusion (D&I) and why is it relevant?

Unleashing people's potential is understood as a driving factor for business

success

success

5 Diversity_in_CEE.pptx

The changing demographics and job requirements in the CEE

countries demand a fresh look at today's organizational capabilities

CHANGES IN THE WORLD OF WORK

YOUNG AND OLD

Men Women Men Women JOB AND CAREER> Cloud economy: Digitization and virtual organizational structures

> Trend toward freelancers: Project-based activities for multiple companies > Work life: Integration of work and everyday life

GENDER MIX

2005 2015 VALUES AND VISIONS> Beliefs and Family: New Roles and responsibilities for partners > Focus on Children: Possibility of a longer parental leave

GENDER MIX

65% 57%

Economics1)

PRIVATE LIFE AND FAMILY

> Demographic change: More elderly family members to care for > Urban lifestyle: Concentration of highly qualified employees in big cities > Individualization: Solutions tailored to the individual

21% 32%

Economics

Technical1)

SOCIAL ENGAGEMENT

> Increasing awareness: Increasing social pressure to reflect the population structure in the company's workforce structure

> Responsibility: Infrastructural changes in order to allow efficient use of > Responsibility: Infrastructural changes in order to allow efficient use of

human resources (e.g. part-time work and care services)

2000 2015

Companies understand the business relevance of diversity – They see

workforce heterogeneity on par with legal requirements as the driver

80%

Findings of the Roland Berger study on Germany

60%

80%

of companies find Diversity & Inclusion have

increasing

business

relevance

60%

of companies consider

legal requirements

and

workforce heterogeneity

as the main drivers

LEGISLATION > E d ti l EMPLOYEES > H t d COMPETITION > I d t lid ti CUSTOMER WISHES > I t ti li ti f > European and national

guidelines for quotas and other anti-discrimination policies

> Heterogeneous and dynamic workforce

> Competitionespecially for highly-qualified scientists and engineers

> Industry consolidations

and increasingly stronger global players

> Dynamic and ambitious new market players in emerging

> Internationalization of companies increase

demand for global services

> Shorter innovation cycles in all relevant value chains

7 Diversity_in_CEE.pptx Source: Study covering 70 German companies from 10 industries; Roland Berger

and engineers market players in emerging

Diversity and inclusion is about unleashing people's individual

potential and focusing on common goals

Definition

WHAT IS DIVERSITY?

> Companies have to make

the most of the full

BUSINESS RELEVANCE

> The collective mixture of differences and similarities that includes for example,

WHAT IS DIVERSITY?

range of their people to succeed – Businesses have to attract and retain the right skills and the p ,

individual and organizational characteristics, values, beliefs, experiences, backgrounds, preferences, and behaviors

best minds

> Maximizing the potential of a diverse workforce is not only a social

> The achievement of a work environment in

WHAT IS INCLUSION?

not only a social

imperative, but can also be acompetitive

advantage

The achievement of a work environment in which all individuals aretreated fairly and

respectfully, have equal accessto

opportunitiesand resources, and can

contribute fully yto the organization’s g

In our research, we analyzed over 25 recent studies – Less than a

fifth include more than one dimension of D&I

Literature overview of studies and articles, 2007-2013

GEOGRAPHIES COVERED

DIVERSITY DIMENSIONS COVERED

GEOGRAPHIES COVERED

[% of all analyzed studies]

DIVERSITY DIMENSIONS COVERED

[% of all analyzed studies]

84 Asia

4 North America

4 Only 16% of analyzed studies _{lti l D&I di i}

8 8 8 12 20 56 28 4 4 Global

cover multiple D&I dimensions

Other Disabled LGBT1) Age Nationality Gender 56 _EU

> Most analyzed studies cover EU countries (mostly Western Europe) or the entire EU

> Many are global and cover leading world economies

or largest companies

> Most studies focus on the development of women

into senior positions, managing retention through

flexibility of working hours and child-care packages

> Nationality is a topic for countries with minoritiesand

9 Diversity_in_CEE.pptx

or largest companies Nationality is a topic for countries with minoritiesand with ethnically diverse populations, but also in

companies with international professional

Source: Roland Berger

Overall, studies to date mostly analyze gender issues in large

corporations on a worldwide scale – A CEE-view is missing

Overview of recent business research – Over 25 studies analyzed

RECENT STUDIES MOSTLY COVER…

… the largest companies in developed markets

(Fortune 1000, listed companies, etc.)

t ll f th EU1)

… one country or all of the EU1)

… but, only a single dimension of diversity (e.g. gender)

AND STATE THAT DIVERSITY…

… leads to better financial and stock market performance

… enrichesthe process of generating ideas

… improves communication in board meetings

HOWEVER NONE OF THE STUDIES…

… have CEE in focusas a region

… cover all three diversity dimensions y relevant for CEE markets: age, gender and nationality

B.

Diversity and Inclusion in Central and Eastern Europe (CEE)

Diversity in the boardroom contributes to better financial results

11 Diversity_in_CEE.pptx

As the basis for this study, we analyzed 68 major companies from

various industries in ten CEE countries

Scope of analyzed companies

COUNTRIES

INDUSTRIES

[% f

l

i ]

Consumer Business Technology, Media

COUNTRIES

INDUSTRIES

[% of sample companies]

Public Sector 1 7 18 and Transportation and Telecommunications 9

Real Estate and Construction POL Manufacturing 16 3 26 AUT CZE SVK HUN Financial Services/bank Life Sciences

and Health Care

3 Financial Services/insurance 4 15 Energy and Resources SVN HRV SRB ROU BGR

BACKUP

The original data set was comprised by a long list of companies –

Reductions had to be made for reasons of data unavailability

Scope of analyzed companies

TOP 500

> A representative number of firms

for

each country

> A representative number of firms

68

COMPANIES

IN CEE

by industry

depending on the

country size

>

Availability

of all required data

points

COMPANIES

IN ANALYSES

points

13 Diversity_in_CEE.pptx Source: Roland Berger

Most CEE governments have not yet opted for regulatory quotas to

increase diversity in the workplace

COMMENTS

> CEE/SEE countries have not

Quota regulations not applied, future

implementation _{> CEE/SEE countries have not}

yet adopted quota regulations for more women in

management positions > Some EU countriesin CEE

Russia Lithuania Latvia Estonia implementation unlikely Quota regulations not applied, future implementation

likely _{> Some EU countriesin CEE}

do not have regulatory quotas yet, but a fair chance for their

implementationin the future > Another se en EU co ntries Ukraine Belarus Poland likely Quota regulations not applied, discussion focus mostly quota regulations for

> Another seven EU countries

in CEE currently without quota regulations are not likely to adoptsuch laws in the near future Slovakia Czech Rep. Hungary Romania Slovenia Moldova Austria Croatia g political institutions (women quotas in economy as secondary goal only) future

> Six countries focusing on quota regulations primarily for

political institutions

(business is not being the

Bulgaria Montenegro Serbia C oat a Maceonia Kosovo Bosnia-Herzegovina

(business is not being the primary scope)

Greece Turkey Albania

Many CEE boardrooms are international and senior in age, but

include female members only in a third of cases

Diversity in CEE boardrooms [% of 68 sample companies]

Austria vs other

Financial Services

CEE diversity

Austria vs. other

CEE countries

Financial Services

vs. other industries

INSIGHTS

59 > AGEof board members is

hi hl t t d d 43 36 29 38 51 54 31

51 highly concentratedaround

the average of 50 in over 85% of cases > 31%of surveyed companies 11 14 5 13 8 29 12 y p

have FEMALE board

members– the leastof them are in Austria(5%) and most in financial services (38%) Other CEE Austria Other industries Financial services (FS) CEE All industries

> FOREIGNboard members are present in more than half

of the CEE companies, yet only in 36% in Austrian

15 Diversity_in_CEE.pptx Source: Roland Berger

Age standard derivation is greater than 10% At least one board member is female At least one board member has foreign background

y

Diversity in the boardroom seems to improve performance – Impact

of gender and nationality mix of board members is strongest

Number of diversity dimensions fulfilled

Profitability improvement through diversity, average EBIT-margin 2008-12

1)

INSIGHTS

18

Gender-N ti lit

EBIT-Margin [%]

Number of diversity dimensions fulfilled

INSIGHTS

> The impact of diversity on profitability is positive 14 16 Nationality 13.9 G d 12.8

> Combiningthe diversity

dimensions improves

performance – however, not

in a linear and consistent

8 10 12 Age-Gender Age-Nationality Gender Age 9.2 6 4 Total impact of diversity: EBIT-margin 6.4%-points

in a linear and consistent

way

> On its own, genderis the

strongest single driver of diversity 0 6 1 Nationality 0 6.4 2 3 diversity

> The most "profitable"

diversity combinationis that of gender and nationality

1

0 2 3 g y

Median per category 1) Based on a sample of 68 CEE companies and should be viewed as an indication, results can vary depending on sample size

C.

CEE Managers' opinion

Significant room for the development of D&I programs in CEE exists

17 Diversity_in_CEE.pptx

Most of the surveyed companies belong to the manufacturing, life

sciences & health care and banking & FS sectors

Fundamentals [% of all answers]

Di t ib ti f

f t i

F

ti /

iti f

Distribution of manufacturing

industries

Annual sales of the company

Function / position of person

interviewed

Manufacturing 20 Public Sector 2 Services 7 Energy and Resources 7 > EUR 1 bn 18 < EUR 200 m 36 12 Other 2 Management Board member Diversity manager ₁₀ Life Sciences and Health Care 15 Retail ₁₀ Real Estate 12 20 36 manager ₁₀ 76 12 Banking and Financial Services 15 and Cons-tructions Consumer Business < EUR 1 bn <EUR 500 m 26 HR Manager 76

CEE managers are aware of the D&I issue, but have not yet

approached it systematically

Overview of key findings from our survey

1 PRECONDITIONS > About 52% of major companies in CEE conduct somediversity & inclusion activities

> Approx. 11 % have at least one full-time employee dedicated to D&I

> Interviewed managers are aware of diversity issues in terms of gender and nationality

2 MOTIVES > The driver of an active approach to diversity lies in the financial benefit for the company and employee satisfaction

> Regulatory quotas or targets are considered to be beneficial for gender dimension g y q g g and counterproductive for the nationality dimension

3 D&I MEASURES > In order to manage diversity in the workplace, CEE managers do not opt for target-based measures – they rather implement specialized programs targeted at attracting, hiring

d t i i di t l t d ff i fl ibl ki h t th h d it

and retaining diverse talents and offering flexible working hours to those who need it

4 CHALLENGES &

SUGGESTIONS > Clearly, enough attention on levels below the boarddiversity is a boardroom and HR topic in CEE, but it does not yet receive

19 Diversity_in_CEE.pptx

> Initiatives remain one-offs and are not built into policies and procedures – working ad hoc has limits to effectiveness – HR managers believe in a rule-based approach

PRECONDITIONS

1

24% respondents' companies have a dedicated diversity program –

Focus of programs is mainly on gender and age

Diversity programs and facts

D

h

di

it

i

fi ?

O hi h

D&I di

i

d

f

ithi

64 74

90

Do you have a diversity program in your firm?

[% of all answers]

On which D&I dimensions do you focus within

your firm?

[% of all answers]

1)

Dedicated D&I 44 59 64 74 24 program 52 Some D&I activities Others Education Nationality Age Gender

90%

24 No D&I activities

24%

90%

of companies' diversity programs focus

on gender – other minorities targeted:

> Nationality (64%) > Age (74%)

24%

of surveyed companies have a dedicated diversity program

52%

of surveyed companies mention to have _{> Education (59%) > Others (44%)}

1) Multiple answers possible

52%

of surveyed companies mention to have some D&I activities

PRECONDITIONS

1

HR is the most commonly responsible department for D&I, but often

does not have a dedicated budget or capacity

Responsible department, size and budget

R

ibl d

t

t f di

it

Si f di

it d

t

t

Responsible department for diversity program

in firm

[% of all answers]

1)

Size of diversity departments

_{[% of all answers]}

53 13 5 3 11 13 3 No dedicated More than 3 FTE 3 FTE 2 FTE 1 FTE <1 FTE I don’t know 61 82 HR Office M b f th S i B d Members of the Management Board

department

Budget of diversity departments

[% of all answers; EUR p.a.]

8 16 16

N i ti l

Members of the Supervisory Board Diversity Manager/Department 19 41 3 0 3 0 14 22 I don’t No >200 000 100 001 50 001 25 001 10 001 0 10 000 13 8 Others No one in particular 21 Diversity_in_CEE.pptx Source: Roland Berger survey

I don t know No dedicated budget >200,000 100,001-200,000 50,001-100,000 25,001-50,000 10,001-25,000 0-10,000

MOTIVES

2

60% of all surveyed managers think that diversity and inclusions is

an important success factor for their firm

Diversity programs and facts

D&I

f t f

i

C

i ' ti ti

t k

D&I

D&I as a success factor for companies

[% of all answers]

5 No

Companies' motivation to work on D&I

[% of all answers]

1)

5

Wishes of employees 54

Financial benefit for the company 66

95

Yes

Wishes of customers 34

Others 40

95%

of surveyed companies think that D&I is a relevant success factor for their firm

Yes Others 40

relevant success factor for their firm

MOTIVES

2

Diversity in companies is mainly driven by expected financial benefit

and the employees wishes for better working climate

D i

f di

it ithi

Wh t d i

th d

d f di

it ?

Drivers of diversity

Drivers of diversity within

companies

[% of all answers]

1)

What drives the demand for diversity?

_{[% of all answers]}

1)

66

Financial More innovation ₉₁

54 66 Wishes of employees benefit Positioning in

war for talents 89

Less fluctuation of workforce 70 power of employees 91 40 34 Others Wishes of customers Better working climate 68 Employee satisfaction 84 Higher revenue 48 Access to new markets 61 5 Other Work-life balance 68 climate 4 26 Others Less employees’ sick days 23 Diversity_in_CEE.pptx Source: Roland Berger survey

5 Other

1) Multiple answers possible

4 Others

MOTIVES

2

The opinion of companies on regulatory quotas and internal targets

is ambiguous

D

tl

D&I ithi

Regulatory quotas and targets as measures of achievement

1)

F hi h

di

i f

D&I d

thi k l t

Do you currently measure D&I within

your company...

[% of all answers]

COMMENTS

56

For which dimension of D&I do you think regulatory

quotas are…

[% of firms]

1)

… using

INTERNAL

No 36 32 6 12 18 32 56

… beneficial?

INTERNAL

TARGETS?

Yes 64 -18 -6 47 -38

… not beneficial?

64% respondents

measure D&I using internal targets

-68 -56

-47

None Nationality

Gender Age Edu- Others cation

measure D&I using internal targets

D&I MEASURES

3

Most firms do not have D&I targets based on financial performance

D

tl

D&I ithi

Usage of measures of D&I

D

h

i t

l

D&I t

t ?

Do you currently measure D&I within your

company…

[% of all answers]

Do you have internal D&I targets?

[% of companies which use D&I measures]

No

_{…and what is the most}

fre-Yes 14

… based on

10 I don’t know Other 6 Months 5

20

_{quently used time horizon?}

14

FINANCIAL

PERFORMANCE?

10 5 5 5 years 30 1 year 45 3 years 80 Yes No 86

> Most companies do not have particular D&I targets

> 45% of surveyed companies have a time horizon of 1 year for their D/I targets

3 years

86% of all respondents

do not measure D&I based on financial performance

25 Diversity_in_CEE.pptx

their D/I targets

> 30% of surveyed companies have a time horizon of 3 years

Source: Roland Berger survey

D&I MEASURES

3

KPI based on targets mostly refer to gender, whereas KPIs tracking

financial effects relate equally to gender, age and other dimensions

Measures

R l ti f D&I i

t

t t fi ' fi

i l

Relation of D&I investments to firm's financial

performance

Examples for diversity effort

> Companies are not aware of the impact of D&I on

financial performance > Avoiding undesired departures/turnover of employees managing retention

financial performance

> They believe that the contribution of D&I is more on the "soft-side" (e.g. organization, communication,

relationship building) and that it cannot be measured Money

– managing retention

D&I related KPIs in use

> Only gender targets are being measured in managing > Investment into career development of women

> Only gender targets are being measured in managing bodies of companies and institutions

> Specific KPIs for nationality and age have not yet been aplied

Money

> Investment into career development of women through specialized programs and counseling

CHALLENGES

4

54% of all respondents think D&I does not receive enough attention

within their organization – Reasons vary

Challenges

D

di

it

i

h tt ti ithi

R

f l k f tt ti

Does diversity receive enough attention within

your company?

[% of all answers]

Reasons for lack of attention

[% of all answers]

1)

73 Low management attention

38 69

73

Lack of dediated D&I capacity among HR Insufficient budget

Low management attention

46 Yes

27 31 p y g

Limited possibility to report on the financial effect of D&I measures Company culture

54

No

19 23 Increase of HR-process complexity

No access to best practices

27 Diversity_in_CEE.pptx

12 Lack of employee engagement

Source: Roland Berger survey

SUGGESTIONS

4

63% of all respondents think D&I will gain more attention in the

future – 31% of respondents are not sure

Suggestions

F t

tt ti t D&I

Future attention to D&I

[% of all answers]

Improvement potential for D&I

I am not sure if D&I > Dedication of talent management programs to D&I I am not sure if D&I

will gain more attention 31

target groups

> More flexibility in managing needs of women in the workplace

> Generating more diverse potential recruits

No, D&I will not gain more attention

6 Yes, D&I will gain more attention

63 > Generating more diverse potential recruits

Specific developments in CEE

> Internationalization of companies with a CEE origin > More working women than in most western

economies, but not equally across all industries > Presence of managers with international background > Presence of managers with international background

LESSONS LEARNED – INTERVIEWS

In order to deepen our insights, we conducted 13 personal

interviews with managers representing multinational firms

One-to-one interviews

> Diversity reporting in CEE is still in its infancy _{> Introduction of a step-to-step program to manage}

CONCLUSIONS FROM THE INTERVIEWS

ACHIEVEMENTS

D

Y D

y p g y

> Most companies in CEE focus on the D&I dimension gender – In particular, equal career development

> Diversity is already a board topic but has not pervaded into the organizations

> Introduction of a step-to-step program to manage diversity

> Obtaining top management support

> Develop training based on business needs > Encourage open communication

ALREA

D

ACHIEVE

into the organizations

> Vast benefits of diversity have already been recognized, such as

– A link between diversity, creativity, and innovation

> Encourage open communication

> Formally assess the situation in your organization > Challenge cultural stereotypes and assumptions > Encourage mentoring and implement employee

TO

B

E

HIEVED

y y

– Reduced absenteeism, employee turnover, increased client loyalty, etc.

> Diversity programs have not yet reached the same degree of importance as talent management programs

> Encourage mentoring and implement employee networks

> Enhance succession and promotion planning process

> Hold managers accountable

AC

29 Diversity_in_CEE.pptx Source: Roland Berger

degree of importance as talent management programs

CEE managers generally realize the importance of D&I for sustained

performance of their businesses

Quotations from individual interviews

"We try hard to encourage men to lean into their families more, especially since research has consistently found that children with involved and loving fathers have higher levels of psychological well-being and better cognitive abilities."

"We would like to hire more female managers but the "For us it is important not only have diversity, _{We would like to hire more female managers, but the}

number of potential candidates in our industry is very low" but also have the inclusion of diversity"

"If we had a female in our leadership team we might be

more effective and spend less time in fights" _{"In our organization it is self-evident to give} "Without full commitment and flexibility of women working part-time

it is not possible for them to reach or keep a managerial function."

g g

female colleagues managementpositions" "We are an international company with international clients. If we wouldn't reflect that in our employee

diversity(nationality, gender, age) from board downwards we would not be credible towards our clients" "Personally, I am against quotas but I think that women would be able to get certain positions more easily in a shorter time frame"

Č

CASE EXAMPLE

Č

eská spo

ř

itelna wants to maximize the benefits from diversity

within societal, gender, age and cultural mix in each team

KEY TO SUCCESS

Maximize benefit of all diversity dimensions

Česká spořitelna / Erste Group

> A comprehensive and systematic Diversity & Inclusion Program "Diversitas" was implemented

Goal

> Maximize the use of social, personal, gender, age and cultural differences within teams

> E b l b t k d f il lif

g p

in the largest retail bank in the Czech Republic > Main reasons

– Increase employee motivation and engagement

> Encourage a balance between work and family life > Provide mentoring and coaching for women

> Open up work opportunities for people with disabilities and promote a sense of mutual respect among employees engagement

– Lower turnover costs associated with hiring and training new employees

– Retain qualified and experienced employees – Improve the perception as a first choice

Focus on gender issues

> Increase the number of senior female managers in the branch network

> Remove barriers to reaching executive management Improve the perception as a first choice

employer

– Attract the best and the brightest

– Encourage leadership styles receptive to innovation and change

> Remove barriers to reaching executive management positions and arrow the gender pay gap – offer female employees back from maternity/parental leave flexible work arrangements

> Leadership development for women

31 Diversity_in_CEE.pptx Source:Česká sporitelna; Roland Berger interviews

innovation and change

CASE EXAMPLE

Creativity and innovation arising from diversity drives invention and

high performance of HP

KEY TO SUCCESS

Accountability for implementation of D&I goals

HP's overall commitment is reflected in their diversity and inclusion philosophy:

> A diverse, high-achieving workforce is the sustainable

titi d t th t diff ti t HP It i ti l t

Hewlett Packard (HP)

> HP believes that diverse work force helps the company realize its full potential

competitive advantage that differentiates HP. It is essential to win in the marketplaces, workplaces and communities around the world

> An inclusive, flexible work environment that values

p y p

> The company benefits from the creativity and innovation that results when HP people who have different experiences, perspectives and cultures work together

differences motivates employees to contribute their best > To better serve our customers, HP must attract, develop,

promote and retain a diverse workforce

> Trust mutual respect and dignity are fundamental beliefs that work together

> Trust, mutual respect and dignity are fundamental beliefs that are reflected in behavior and actions

> Accountability for diversity and inclusion goals drives the success

CASE EXAMPLE

Within the Odyssey program, both mentor and mentee are

motivated to further develop their skills

KEY TO SUCCESS

Mentoring program

Vodafone Czech Republic

> To unleash the potential of talented Czech female professionals, to foster a culture for mentoring in

Program results

> Detailed insight for the mentee's personal and professional development – Both parties are motivated to further develop their interpersonal and professional skills

p , g

businesses and to provide center of excellence for the development of Czech female leaders, project Odyssey was launched

> Goals

their interpersonal and professional skills

> Growth experience that cultivates mutual respect and support for the parties involved and promotes a culture of mentoring in the Czech Republic

> Exchange of information and knowledge between members > Goals

– Uncover and activate the potential of Czech female professionals

– Increase the diversity of the Czech business environment

g g

of different organizations

Lessons learned and challenges

> Developing a roadmap as a guideline for mentors, mentees and program organizations proved helpful

environment

– Expand the pool of Czech female business role models for the future

and program organizations proved helpful

> Developing a good marketing strategy for promotion of the program is crucial

> Development of training activities, tools and techniques for an effective mentoring relationship is important

33 Diversity_in_CEE.pptx Source: Vodafone; Roland Berger interviews

g p p

> Finding willing mentors and the right matches between mentors and mentees poses a challenge

CASE EXAMPLE

OMV's Diversity Strategy 2020 focuses on gender and nationality –

Initiatives range from scholarships to an OMV kindergarten

KEY TO SUCCESS

Living Diversity is a Leadership Competency

OMV

> Workforce diversity is not only a commitment but also an important enabler to create business

> To safeguard future agility as an organization, OMV is working on a group-wide diversity strategy that covers two areas

– Nationality Gender diversity p

value

> OMV commits throughout the employment period from hiring to termination to adhere to its

corporate anti-discrimination directive

– Gender diversity

> Efforts are being directed at the highest possible manage-ment level – All other levels will automatically follow suit > The target is to achieve a diversity mix throughout the group

KPI t f th S i Vi P id t l l i 18%

corporate anti discrimination directive – Equal opportunities to all

employee groups in all recruitment processes Company procedures and

– KPIs are set for the Senior Vice President level, i.e. 18% women and 38% internationals by 2015, and 30% women and 50% internationals by 2020

> Initiatives

T h i l h l hi f – Company procedures and

– Employment contracts – Leading role is taken by

OMV's Romanian subsidiary P t

– Technical scholarships for young women – English as the company language

– Flexible working conditions for parents and kindergarten for OMV employees’ children

Petrom _{– Various initiatives in order to develop diversity skills and}

D.

Lessons learned

Comprehensive programs, clear commitment and communication are necessary

35 Diversity_in_CEE.pptx

CEE businesses are a fertile ground for diversity, but much remains

to be done due to a lack of awareness rather than a lack of openness

Lessons learned

1

Diversity and inclusion seem to have a measurable positive impact on

1

Diversity and inclusion seem to have a measurable positive impact on

business performanceas indicated by a CEE sample

Combining different dimensions of diversity is key to achieving a financial impact – the most value-adding combination is the inclusion of both female

2

impact – the most value-adding combination is the inclusion of both female

and international board members

2

3

CEE companies are focused on gender issues – nationality comes second, whereas age receives little attention

4

Companies are aware of the link between D&I and performance, but few

have started measuring the financial effects

3

whereas age receives little attention

Not all companies have become fully aware of the potential of international

6

5

Beside potential financial benefits, employeesare the key drivers behind

D&I initiatives in CEE – the boardroom is seen as the company's mirror Not all companies have become fully aware of the potential of international or multicultural talents

Against this background, the authors of the study recommend to…

Set up a

diversity program

with dedicated

goals, capacity, budget and time frame

Develop KPIs to capture and track and measure the right combination of diversity and

inclusion dimensions

for the needs of your company

E amine di ersit thro gh

m ltiple dimensions e plore

the effects of

di ersit in age go

Start

long-term planning for diversity

already in the

first stages of recruitment

and let it pervade

into talent management and mid- and top management

Learn from best practices

from in- and outside of CEE

Examine diversity through

multiple dimensions

–

explore

the effects of

diversity in age go

beyond focusing on single issues such as gender

p

C

i t

bli l d

i t

ll

h d h D&I i k

f t

f

Watch out

for typical break points

within the program and/or a career, e.g. maternity leave

37 Diversity_in_CEE.pptx Source: Roland Berger

Communicate

publicly and internally

why and how D&I is a key success factor

for your company

and business

E.

Authors

Please contact us to further explore this fascinating topic

Authors

Vera Budway -Strobach, M.A. Mag. Michaela Schwarzinger Dr. Vladimir

Preveden Dipl. Kfm. Nikola Jeličić

HR Manager CEE

Partner Consultant Erste Group Diversity Manager

R l d B St t C lt t G bH Roland Berger Strategy Consultants GmbH

Phone +43 1 53602-0 Fax +43 1 53602-600 [email protected] www.rolandberger.com Freyung 3/2/10 1010 Vienna Austria

Erste Group Bank AG

Phone +43 0 50100-12738 Fax +43 0 501009-12738 Graben 21, 1010 Vienna 39 Diversity_in_CEE.pptx Source: Roland Berger

[email protected] www.erstegroup.com